U.S. First-Quarter GDP Growth Exceeds Estimates at 1.1%

The video discusses the GDP estimates for the first quarter, highlighting the progression from an initial estimate of 0.5% to a final reading of 1.1%, driven by improvements in construction, trade, and manufacturing inventories. It also covers core personal consumption expenditures (PCE), which came in slightly below estimates at 2%. Despite these economic indicators, the futures market showed little reaction due to uncertainties surrounding Brexit.

What was the final revised GDP growth rate for the first quarter?

• 2.0%

• 0.8%

• 0.5%

• 1.1%

Which of the following factors contributed to the GDP improvement?

• Lower manufacturing inventories

• Reduced trade activity

• Increased core shipments

• Decreased construction spending

How did the core PCE figures compare to the estimates?

• They were higher than estimates

• They matched the estimates

• They were slightly lower than estimates

• They were significantly lower than estimates

What was the estimated core PCE growth rate?

• 2.2%

• 2.1%

• 2.0%

• 1.9%

Why was there little reaction in the futures market despite a stronger GDP reading?

• Owing to a strong labor market

• Because of Brexit uncertainties

• Because of rising interest rates

• Due to high inflation rates